[BTC-TC] IPO Details for BTC-GROWTH

[E.Sam]

http://en.m.wikipedia.org/wiki/Net_asset_value :]

[DrGregMulhauser]

I believe it is self-evident that it will be divided by outstanding shares as it is not a sale of rights to profit in a company but a fund.

Edit: Apparently there simply isn't any dividends.

Yes, the fund focuses on capital growth, not current income. (For folks especially interested in this, there's a brief note in the fund's main discussion thread about fixating on dividends at the cost of total return: it is, after all, trivially easy to pay a large dividend simply by destroying book value.)

The point about shares outstanding is important -- even if we're not talking specifically about dividends. As per the section headed "Capital Structure and Voting Rights", it's the number of shares outstanding that matters for calculation of net asset value per share.

[DrGregMulhauser]

During the first 24 hours of the initial offering which began Thursday at 1 pm, the BTC Growth fund reached around 1800 BTC in capitalisation.

It looks like the initial tranche of shares is sufficient to satisfy demand, as the capitalisation is now creeping upward only a little at a time. If any shares remain in the initial offering tranche as of Saturday morning (UK time), I'll plan to cancel that open ask order so as to enable any current participants who wish to exit their position to do so without that lingering ask in place.

To clarify, the NAV per share of the fund immediately subsequent to the initial offering is .1 BTC minus the .2% fee which the exchange charges to distribute them, or .0998 BTC. That NAV per share will not be affected by any further distribution of shares from the initial tranche, since each new share taken up would add exactly the same amount of capital to the fund.

[drawingthesun]

During the first 24 hours of the initial offering which began Thursday at 1 pm, the BTC Growth fund reached around 1800 BTC in capitalisation.

It looks like the initial tranche of shares is sufficient to satisfy demand, as the capitalisation is now creeping upward only a little at a time. If any shares remain in the initial offering tranche as of Saturday morning (UK time), I'll plan to cancel that open ask order so as to enable any current participants who wish to exit their position to do so without that lingering ask in place.

To clarify, the NAV per share of the fund immediately subsequent to the initial offering is .1 BTC minus the .2% fee which the exchange charges to distribute them, or .0998 BTC. That NAV per share will not be affected by any further distribution of shares from the initial tranche, since each new share taken up would add exactly the same amount of capital to the fund.

So this means we instantly lose 2% of our investment?

The value of each share is determined by the value of the fund. How will you update the current value? Via the website perhaps?

This essentially gives you 100% control over the share value. If you say each share is now worth 0.5 then who are the shareholders to argue.

How long until the fund will increase enough to cover this instant 2% loss. Also are you paying yourself a wage from the fund? Meaning that if the fund maintains its base value we will lose value due to your wages?

Thanks for clarifying.

[DrGregMulhauser]

So this means we instantly lose 2% of our investment?

No, this means the fund instantly loses 0.2% -- not 2% -- from capital received. The exchange does not conduct transactions for free; that means it is not possible to issue shares and receive exactly the same amount as participants pay for them.

As indicated in the fund's listing documents, potential participants should ensure that they are familiar with the rules of the exchange; this includes being aware that the exchange levies charges on transactions.

Note that we are talking about a sum total of 3.6 BTC out of 1800 BTC (1800 times 0.002 = 3.6).

The value of each share is determined by the value of the fund...

Also are you paying yourself a wage from the fund? Meaning that if the fund maintains its base value we will lose value due to your wages...

Please see the listing documents for full details. Please do not participate in the fund without reading the listing documents.

For more discussion on the basics of the fund, you're very welcome to stop by the main discussion thread for the fund (linked from the OP); this thread is intended to be about the mechanics of the initial offering.

[DrGregMulhauser]

As of a few minutes ago, the final shares from the initial tranche have been allocated. It took around 30 hours for the 20,000 shares to go.

Because only a relatively very small proportion of that activity took place during today's business day (UK time), however, I believe the initial demand for the fund has been adequately met, and therefore we won't plan to release any further tranches at this time. As described in the fund's listing documents, however, we may do so in future, should the fund begin to trade at a premium to the most recently published NAV.

Many thanks to all who participated!

[bigdude]

How's it going DrGreg?

Doubled our money yet     

[DrGregMulhauser]

Updates will be posted in due course over at the main thread:

https://bitcointalk.org/index.php?topic=266828.0